Starting a Company in Singapore Pros:
Singapore is known as one of the safest and most business-pro countries in the world. It is supported by accommodating government rules that are transparent and consistent. The policies protect companies in every way possible and ensure your business activities safety. Singapore is known as one of the top least corrupt countries in the world with well-developed infrastructure that supports your business needs. It is very ideal geographically for trade and it is highly competitive while maintaining its ease of doing business qualities.
As one of the leading economies in the world, Singapore has a low corporate tax. A company in Singapore is taxed at a flat rate of 17%. In Singapore, capital gains are not taxable.
If specific conditions are qualified, then all Singapore-based start-ups can benefit from tax exemption scheme of Singapore tax. They won’t have to pay tax on the first $100,000 of taxable income for the first three years and 50% of the corporate tax rate for the next $200,000 taxable income which you can get the full information on this website: https://www.companyregistrationinsingapore.com.sg/
Singapore has a network of more than fifty comprehensive Double Taxation Avoidance Agreements as well as free trade agreements and the Investment Guarantee Agreements.
You don’t have to worry about getting your ideas and innovations stolen or plagiarized in Singapore, because it has very strict enforcement of intellectual property laws.
For newly-started business, you may have access to financial assistance provided by the government to help new entrepreneurs with capital gaining or funding. They can earn cash grants, government-aided equity financing schemes, and others.
Starting a Company in Singapore Cons:
Singapore’s local workforce has been directed to higher-valued jobs like finance, biochemistry, and industrial engineering. While its leading industries are hospitality, foods and beverages, tourism, and retail, the country has very limited labor in those sectors. The way they will the void is with accepting immigrants that are willing to work in those positions. With the increase of foreign workers in the countries, it also raises labor cost for small businesses. There is a high land cost in Singapore as well, because of its limited land availability. Buying and renting land in Singapore costs a lot so owning an office or industry requires a lot of money. It is more recommended to rent those properties. Living cost and goods are also high due to the lack of natural resources and high dependency on import of raw materials.
These pros and cons must be taken into consideration before you decide to start your business in Singapore. There is money to pay to register a company in Singapore procedures as well as other post-incorporation compliances such as licenses and permits for specific types of businesses. Now that you’ve understood that there is a high cost of owning land and living cost as well as labor cost, you need to prepare your resources and capital well. This consideration also affects the type of business entity you may want to register as the requirement and costs differ for each. Consulting a professional firm that is familiar with all the implications that may occur from all the considerations may help you avoid troubles and losses in starting up your business.
